Audit: KC Aviation Department finances in good shape

Report indicates things would be different should KCI change

A new audit said the finances of Kansas City’s Aviation Department are in good shape right now, but that would be a different story if the department takes on a big debt, such as renovations or rebuilding at Kansas City International Airport.

A new audit said the finances of Kansas City’s Aviation Department are in good shape right now, but that would be a different story if the department takes on a big debt, such as renovations or rebuilding at Kansas City International Airport.

The Aviation Department, which runs the airport, operates differently than most of City Hall. It’s an enterprise fund.

“The enterprise funds, they are essentially a business, so they are separated from the normal accounting records,” said Kansas City auditor Doug Jones.

Kansas City’s Water Services and Sewer departments run the same way. The city’s audit also described their finances as mostly favorable.

Water Services said the frequent double-digit water bill increases ended last year. Five consecutive years of 15 percent wastewater rate hikes are also over, but they’ll still increase by about 13 percent per year for another five or six years.

Jones gave the Aviation Department a rating of generally favorable, but did raise concerns about its aging assets. The condition of KCI Airport has been a key factor in the debate about making changes there.

The report said the department breaks even now.

“So if they do incur additional debt for whatever happens out there, they’re going to have to have a financing plan for that new debt,” said Jones.

The airlines that serve the airport and the Federal Aviation Administration will provide the money for any remodeling, but the Aviation Department could also raise some airport surcharges or make cutbacks. By law, general taxpayer money cannot be used.

“It’s an enterprise fund. Whatever they get is what they use at the airport,” said Jones.

The city hopes to make a decision on the future of Kansas City International Airport later this year. There will ultimately be a public vote on the matter.